Dropping inventory has been the lead story of the real estate market all year, and the 24.1% drop from November 2016 to November 2017 is the highest it has been in the last 12 months. No wonder buyers are frustrated by how hard it is to find a home to buy!
New listings dropped by 6.7% as pending sales increased by 4.0%, contributing to the strong drop in total number of homes for sale. With interest rates slowing rising as prices also continue to rise, many buyers are diligently searching for a home… but also cautious to not buy just anything to get into the market. They are looking for the right home in the right neighborhood at the right price for them.
Median sales price increased 6.5% to $245,000 in November 2017, driving days on market until sale down 11.1% to 56 days.
Months supply of homes for sale is down to only 1.8 months, down 21.7% compared to last November. The same as it was last January… 2 months ahead of time.
If you are wondering what months supply of inventory means, that is how long it would take for the current inventory to be completely sold if sales continued at the same rate and no new listings were added. The market is considered balanced between buyers and sellers when there is a 5-6 month supply. We are currently in a strong seller’s market.
The price range with the biggest increase in sales in November 2017 was homes prices $1,000,000+… resulting in a drop in months supply of homes for sale in that price range to 9.2 months, the lowest it has been in a long time. All price ranges under $1,000,000 have months supply ranging from 1.1 to 4.4 months.
The property type with most sales were townhomes. With such a shortage of homes available for sale, it shouldn’t be surprising to learn that new construction had the strongest sales, 16.2% over last year.
The figures above are based on statistics for the combined 16-county Twin Cities metropolitan area released by the Minneapolis Area Association of Realtors.
Never forget that all real estate is local and what is happening in your neighborhood may be very different from the overall metro area.
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